P.S. Last time I posted on this message board, my pc was infested by the
HAPPY.EXE worm. My system has now been dewormed and I apologize to the
group for the inconvenience.
Andrew W. Bacdayan, Ph.D.
College of Business
Northwestern State University
Natchitoches, LA 71497
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From: Anthony Davies <adavies@altavista.net>
To: Teach Econ Discussion List <tch-econ@numen.elon.edu>
Subject: Re: query
Date: Friday, April 02, 1999 9:52 AM
We think of quantity demanded and quantity supplied as being functions of
price because we tend to think in terms of individual behavior (i.e.: how
many units am I willing to buy when the price is $2). In modeling
equilibria, we think not in terms of individual, but group behavior (i.e.:
if the group is looking to consume 100 units but only produce 80,
competition among the consumers for a limited quantity of product will be
manifest in an increase in price). Thus, it seems to make sense to think of
quantity as a function of price from the perspective of the individual, but
price as a function of quantity from the perspective of the market as a
whole.
Anthony Davies
Visiting Professor
Division of Economics and Finance
West Virginia University
Morgantown, WV 26505